[edabobojr]

I'll just throw for the opposing side and point out that "Gov. Pete Wilson, took $1.6 billion from CalPERS accounts in 1991 to help close a state budget gap". A random internet calculator tells me that investing in the S&P 500 with reinvested dividents since July, 1991 has had a 844% return. I wonder impact $1.3 trillion would have on the CalPERS shortfall (edit: this would only be $13 billion).

[Zanta]

Your math is off by a couple orders of magnitude :)

[edabobojr]

Ouch! I feel the fool.

Revised thoughts. It would only be 10 billion, which would equal two years of payouts for the entire pension.

[wahern]

obligatory XKCD: https://xkcd.com/947/

[soVeryTired]

Gotta match assets with liabilities. That money would have mostly been invested in bonds. Still would have made a fortune though.

[edabobojr]

Also, in 2008 and 2009 California did not fully pay pension contributions. http://www.wsj.com/articles/SB100014240527023048301045751722...